Nestlé has stuck by its full-year forecast despite reporting weak sales growth figures for its fiscal first quarter.
The group said sales were up just 0.4% to 21bn Swiss francs, rising by 2.3% on an organic basis. The latter was considerably below the 3.9% growth it registered in the same period last year, although that was helped by an early Easter and one extra trading day.
On an organic basis, sales in the Americas edged up 0.4% to 6.4bn francs, while the EMENA (Europea, Middle East, North Africa) sales were up 1.7% to 4bn francs, and AOA (Asia, Oceania, and sub-Saharan Africa) sales grew by 4.5% to 4bn francs.
On the same basis, sales at its Nutrition unit rose by 1.1% to 2.6bn francs, sales at the Waters unit was up 3.1% to 1.8bn francs, and its other businesses reported a 5.8% increase to 2.3bn francs.
CEO Marc Schneider said the result was “within our full-year guidance range”, adding that the group was “encouraged by the growth in Asia and the resilience of consumer spending in Europe”. He said the group still expects full-year sales to grow by 2%-4% on an organic basis.